Factors Affecting the Family Purchase Decision Toward Apartments in China: A Case Study of Young Couples

Citation

Zhao, Jun Cheng. (2019). Factors affecting the family purchase decision toward apartments in China: A case study of Young Couples. (Master’s independent study). Bangkok: Siam University.

Abstract

Real estate in China is developed and managed by public, private, and state-owned red chip enterprises. In the years leading up to the 2008 financial crisis, the real estate sector in China was growing so rapidly that the government implemented a series of policies – including raising the required down payment for some property purchases, and five interest rate increases in 2007- due to concerns of overheating. However, after the crisis hit, these policies were quickly eliminated, and in some cases tightened. Beijing also launched a massive stimulus package to boost growth, and much of the stimulus wound up flowing into the property market and driving prices upward, resulting in investors increasingly looking abroad. By late 2014, the IMF warned that a real estate oversupply problem had arisen that threatened to negatively impact the economy, particularly in 2nd and 3rd tier cities. As of 2015, the market was experiencing low growth and the central government had eased prior measures to tighten interest rates, increase deposits and impose restrictions.By early 2016, the Chinese government introduced a series of measures to increase property purchases, including lower taxes on home sales, limited land sales for new development projects, and the third in a series of mortgage down payment reductions.

The researcher of this individual research focused to find factors which can affect purchase decision of young couples. There were six factors that the researcher found in previous studies. They are price sensitive, perceived risk, evaluation, attitude, demographic characteristic and environment. The researcher used questionnaires to reach the respondents. The questionnaires had two types, online and offline. The researcher used SPSS software to analyze the primary data from the questionnaires. The secondary data come from websites, books, journals, articles and newspapers. After researcher used software analyze the data, the results showed some variables have relationship with purchase decision, they were price sensitive, perceived risk, evaluation, attitude, demographic characteristic and environment. The perceived risk and evaluation do not have relationship with purchase decision. After data analysis,the researcher gave some recommendations and future study suggestions to real estate agencis and young couple.

Keywords: Real estate, Price sensitive, Perceived risk, Evaluation, Attitude.

Factors Affecting the Family Purchase Decision Toward Apartments in China : A Case Study of Young Couples

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand

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